If you are a small business owner like me, you better dot your “i’s” and cross your “t’s” the next time you do your taxes. The new Biden Tax & Spend legislation gives the IRS a whopping $80 billion to hire 87,000 new IRS agents. The shakedown of American small businesses will start next year.
I’ve been surprised by how many people have fallen for the White House talking points that the new tax agents will only be taking the place of retiring agents; that the IRS will only be pursuing the uber-wealthy; and that it will be too hard to hire new agents quickly to have much of an impact.
We’ve heard these empty promises before. Remember the Obamacare talking point, “you can keep your doctor”? That was woefully inaccurate, and it’s clear these latest claims about new tax agents are all part of the D.C. Democrats' typical strategy to misdirect voters from the truth.
There are currently some 50,000 IRS agents. 80,000 new hires are not needed for simply retiring agents. The number of auditors is going to explode, and that’s the purpose. The very own estimates from the bill authors target around $200 billion of revenue by pursuing greater compliance. Mind you, there are tax cheats who need to be compelled to pay their taxes, but the only way to pursue the kind of money D.C. Dems are describing is to cast a wide net of aggressive audits.
The non-partisan Tax Foundation says that the IRS will start looking at the tax returns of everyone that uses Schedule C, which documents business expenses. This impacts millions of taxpayers, not just corporate titans.
As a Tulsa financial planner, I will need to make sure clients are working with a competent accountant to ensure their taxes are done correctly. I predict audits in 2023 will grow by at least 30%, and I don’t want my clients to be caught in the Big Government shakedown.